NioCorp (NASDAQ:NB) - H1/26 Financing with Strong US Government Support

Niop Project Update & Critical Minerals Strategy – Transcript Summary

Key Concepts:

• Niobium (Nb): A critical metal currently 100% imported by the US, essential for high-strength steel alloys.
• Scandium (Sc): Another 100% imported critical metal, used in aerospace and aluminum alloys for weight reduction and strength.
• Rare Earth Elements (REEs): Specifically Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb) – vital for permanent magnets used in electric vehicles and defense applications.
• Onshoring/Reshoring: The US government’s initiative to bring critical mineral supply chains back to domestic soil.
• Project Financing: Securing funding (debt and equity) for the full-scale development of the Elk Creek project.
• Offtake Agreements: Contracts securing buyers for the produced minerals, crucial for securing project financing.
• Portal Project: Initial underground mine development to access the ore body, a key step demonstrating project commitment.
• US EXIM Bank: The US Export-Import Bank, a potential lender for the project.

1. Project Overview & Strategic Importance

Niop (NASDAQ: NB) is developing a critical minerals project in southeast Nebraska, focused on securing domestic supply of materials currently 100% reliant on imports. The primary target is niobium, with scandium, titanium, and magnetic rare earth elements (Nd, Pr, Dy, Tb) as valuable byproducts. Mark Smith, Chairman and CEO, emphasizes the project’s significance for US national security and the onshoring of strategic mineral supply chains. The project aims to address the US’s high import rates for these critical materials, particularly the complete dependence on foreign sources for niobium and scandium.

2. 2025 Achievements & Fundraising

2025 was a pivotal year for Niop, marked by successful fundraising exceeding $370 million, including a $10 million grant from the US Department of War. This funding facilitated a drilling program to upgrade reserves from “probable” to “proven” as required by the US Export Import Bank (EXIM Bank). Additionally, the grant supported an engineering upgrade, refining the process flow diagram to feasibility study level. These advancements position Niop for accelerated progress in 2026.

3. 2026 Plans & Project Financing

Niop anticipates securing full project financing by the end of Q2 2026, with a strong likelihood of achieving this goal. The company has already initiated the “Portal Project” – the development of an underground mine access point – demonstrating confidence in securing financing. This $45 million project, funded from existing $300+ million cash reserves, will allow access to the hard rock ore body. The Portal Project is expected to take 9-10 months, positioning Niop to begin full-scale construction shortly after securing financing. Smith expresses optimism about exceeding expectations and maintaining budget adherence.

4. EXIM Bank & Due Diligence

Securing a binding commitment from the US EXIM Bank remains a key priority. While a commitment is not yet in place after two and a half years of engagement, recent communication indicates Niop is a “top priority” project within the bank. The EXIM Bank’s due diligence process is described as exceptionally rigorous, but the increased engagement – a surge in communication in the last two weeks of 2025 – signals positive momentum.

5. Updated Feasibility Study & Rare Earths Impact

Niop is updating its feasibility study, incorporating recent price increases in rare earth elements. Historically, the rare earth content in the ore body was considered sub-optimal for a primary rare earth mine. However, current market conditions, particularly price floors established by the US government (e.g., $110-$120/kg for NDPR following the MP Materials deal) and export restrictions from China, have dramatically improved the economic viability of these byproducts. A significant price disparity has emerged between Chinese and non-Chinese rare earth prices, with heavy rare earths (Dysprosium, Terbium) experiencing the most substantial increases – Dysprosium trading at $1,250/kg outside China versus $250/kg within China, and Terbium at $4,000/kg versus $800-$1,000/kg. The updated feasibility study, expected in mid-to-late March, will reflect these favorable pricing dynamics.

6. Scandium Market & Vertical Integration

The scandium market is described as particularly intriguing, with a significant price difference between Chinese ($700/kg) and non-Chinese ($2,000-$3,000/kg) markets. Niop anticipates producing approximately 100 tons of scandium annually, representing a substantial increase in global supply. The company is pursuing a vertically integrated strategy, including scandium oxide production, metal production, and master alloy manufacturing, driven by US Department of Defense interest and potential applications in aerospace and automotive industries. Niop has already acquired assets and intellectual property related to scandium aluminum alloy production.

7. Risk Mitigation & Offtake Agreements

Niop is actively securing offtake agreements to mitigate financial risk and support EXIM Bank financing. Approximately two-thirds of the niobium production is already covered by definitive enforceable contracts, along with 12 tons per year of scandium. The company is pursuing both individual offtake agreements and a potential overarching agreement for remaining production. Securing sufficient offtake is critical to achieving the desired 65/35 debt-to-equity ratio for project financing.

8. Government Support & Partnership

Smith views US government support, including price supports and potential equity participation (similar to the USA Rare Earth deal), as a positive development necessary to counter China’s dominance in critical minerals. He emphasizes that this support is not nationalization but a strategic partnership to build domestic supply chains. Niop is actively engaging with the Department of War and aims to secure similar terms to other US-based critical mineral projects.

9. Valuation & Upside Potential

Smith believes Niop is currently undervalued, despite a 350-400% share price increase in the past year. He attributes the potential for significant upside to successful project execution, securing offtake agreements, and the unique combination of critical minerals the project will produce. The company’s diversified revenue streams (niobium, scandium, titanium, rare earths) provide stability and reduce reliance on any single commodity.

Notable Quotes:

• “This is a very critical project for the United States as part of its onshoring efforts for all of the critical strategic minerals that we are currently importing at at very very high rates.” – Mark Smith
• “We are so confident about that happening in calendar year 2026 that we've actually started and our board approved what we call the portal project.” – Mark Smith
• “They [EXIM Bank] are now moving and what we like to call Trump speed uh with this loan process.” – Mark Smith
• “We’re going to start this project. Okay, incredible construction has started and uh we'll see where you get to at the end of uh Q2.” – Mark Smith

Technical Terms:

• Ferro Niobium: An alloy of niobium and iron, used in high-strength steel.
• NDPR: Neodymium-Praseodymium Oxide, a key component in permanent magnets.
• Dysprosium (Dy) & Terbium (Tb): Heavy rare earth elements used to enhance the performance of permanent magnets.
• TiO2: Titanium Dioxide, a widely used white pigment and precursor to titanium metal.
• Master Alloy: A concentrated alloy used to add specific elements (like scandium) to other metals.
• Metallurgical Process: The science and technology of metals and alloys.

Conclusion:

Niop is strategically positioned to become a significant domestic supplier of critical minerals, addressing a key US national security priority. The company’s successful fundraising, progress on the Portal Project, and favorable rare earth pricing trends create a strong foundation for future growth. Securing EXIM Bank financing and finalizing offtake agreements are critical next steps, with a target of full project financing by the end of Q2 2026. Niop’s diversified mineral portfolio and vertically integrated strategy, particularly in scandium, offer a compelling investment opportunity with substantial upside potential.